Some people argue that o curb the ongoing traffic issues, governments must levy huge tax on private automobile owners and utilise their money to enhance the public transport services. I will discuss the benefits and drawbacks of this situation in the following paragraphs.
The main benefit of taxing private car owners is that it will make car ownership less affordable to them and consequently they will buy fewer cars. Nowadays, it is common for many families to own three or four cars when just one would suffice. When new cars are taxed heavily, members of a family will choose the share the service of their only family car instead of buying a separate car for each member of the family. The obvious advantage of this development is that it will reduce the number of cars on the road and thus ease traffic congestion and improve air quality. As for the government, it can use the money collected from private car owners for improving public transportation. When the quality of private transport increases, more and more people will opt to use it. This, in turn, will further reduce the number of cars on the road and prevent traffic jams to a great extent.
On the downside, when fewer people buy cars, it will reduce the profitability of car makers. As a result, they will have to lay off some of their employees. This will increase the unemployment rate and affect the economy. Also, when car companies go out of business, the government will not be able to collect much tax from them. In short, this move might reduce traffic congestion but its overall impact on the economy will be devastating. In addition, this measure will make cars unaffordable to middle and lower income families.
In conclusion, increasing tax on private vehicles will certainly reduce traffic congestion to some extent and improve air quality; however, at the same time, it will make cars unaffordable to middle and lower income groups and thus further increase inequality in the society. Also, it will hurt the economy as it will cause many car makers to go out of business.
Some
people
argue that o curb the ongoing
traffic
issues,
governments
must
levy huge tax on
private
automobile owners and
utilise
their money to enhance the public transport services. I will discuss the benefits and drawbacks of this situation in the following paragraphs.
The main benefit of taxing
private
car
owners is that it will
make
car
ownership less affordable to them and
consequently
they will
buy
fewer
cars
. Nowadays, it is common for
many
families
to
own
three or four
cars
when
just
one would suffice. When new
cars
are taxed
heavily
, members of a
family
will choose the share the service of their
only
family
car
instead
of buying a separate
car
for each member of the
family
. The obvious advantage of this development is that it will
reduce
the number of
cars
on the road and
thus
ease
traffic
congestion and
improve
air quality. As for the
government
, it can
use
the money collected from
private
car
owners for improving public transportation. When the quality of
private
transport increases, more and more
people
will opt to
use
it. This, in turn, will
further
reduce
the number of
cars
on the road and
prevent
traffic
jams to a great extent.
On the downside, when fewer
people
buy
cars
, it will
reduce
the profitability of
car
makers.
As a result
, they will
have to
lay off
some
of their employees. This will increase the unemployment rate and affect the economy.
Also
, when
car
companies
go out of business, the
government
will not be able to collect much tax from them. In short, this
move
might
reduce
traffic
congestion
but
its
overall
impact on the economy will be devastating.
In addition
, this measure will
make
cars
unaffordable to middle and lower income families.
In
conclusion, increasing tax on
private
vehicles will
certainly
reduce
traffic
congestion to
some
extent and
improve
air quality;
however
, at the same time, it will
make
cars
unaffordable to middle and lower income groups and
thus
further
increase inequality in the society.
Also
, it will hurt the economy as it will cause
many
car
makers to go out of business.